May 14 - Caterpillar is to sell a 65 percent stake in Caterpillar Logistics Services LLC, its third party logistics business, to Platinum Equity in a deal reported to be worth USD750million.
Under the terms of the agreement, Caterpillar would retain a 35 per cent stake. The transaction is expected to close in the third quarter of 2012.
"The sale of the third party logistics business would be a key step in the execution of our enterprise strategy. This event enables Caterpillar to increase its focus on our core business that aligns with our strategic business model," said Stu Levenick, Caterpillar group president with responsibility for customer & dealer support.
Over the past 25 years, the third party logistics business has provided logistics service to more than 50 customers worldwide in a number of different industries. As part of the agreement with Platinum, the third party logistics business will continue to provide logistics services for non Cat branded parts including FG Wilson, Perkins, Solar, as well as for Caterpillar Japan.
Platinum Equity partner Jacob Kotzubei said: "We have a lot of experience owning and operating businesses that provide complex supply-chain solutions. We know what customers expect, and we share Cat Logistics' commitment to the highest levels of service and dependability."
The proposed sale does not affect Caterpillar manufacturing logistics and transport operations and Cat brand parts distribution; they will continue as core businesses within Cat Logistics.